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Saskatchewan | As much as it would be nice for fert prices to drop, Id rather see the price of grain rebound. on a per acre bases on my farm if prices of fert drop $100/tonne its a savings of $4/ac, if the price of wheat increases $1/bu it adds up to at least $30-40/ac. I know this will be different for each location depending on fertility requirements, but for me I also look at opportunity cost, my fertility requirements run me about $40-50/ac, with the removal of fert there would be about a 10-20 bu/ac loss in yield depending on the year so at $6 wheat I would be losing money eliminating fertilizer, scaling back would scale yields back accordingly not to mention having to replenish those nutrients down the road. All this being said im not in a posistion to change my cropping practices based on fertilzer prices, sorry for getting a little of topic I just think sometimes the price tag on fert gets overlooked by how much your spending and people forget how much money they could potentially lose by eliminating it. More often then not it will pay for itself, were at the point where to many specualtors are involved in the markets, now if fert were to drop some speculator would say farmers are going to fertilize more now and produce more grain and the price of grain will drop further, its just a vicious cycle
Edited by barnyard19 10/2/2008 17:53
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Fertilizer prices softening
